In a statement published on Monday, the CGFP argues that Minister of Finance Yuriko Backes is only in a position to cite national reserves since the tax table has not been adjusted to inflation for several years:
“Until 1996, the automatic adjustment was not questioned. If the cumulative inflation since the last adjustment of the tax table was 5%, it was automatically adjusted by 5%. The last major adjustment was made in 2009. In 2013, this mechanism was removed from the tax legislation.”
For that reason, the CGFP shares the criticism of the Independent Luxembourg Trade Union Confederation (OGBL), which said that Minister Backes’ proposed tax reliefs worth €500 million were in fact pre-financed by the population.
The CGFP therefore demands that additional income levels be introduced in the taxation system. Furthermore, the Confederation wants to stretch the tax table by €3,000 on the first 19 levels. This would lead to the 39% tax rate only coming into effect for annual salaries exceeding €105,000 instead of those approximating €46,000, notes the CGFP statement.
Finally, the Confederation also demands that the 1A tax class, which often affects single parents or , be abolished altogether.
